Australia unveils $1.3bn fund for investment with ASEAN

On Tuesday, Australia announced intentions to increase its investment in Southeast Asia, allocating $1.3 billion to support commerce in a region experiencing growing economic power.

The financing was announced by Prime Minister Anthony Albanese during a three-day conference in Melbourne with leaders of the ASEAN forum, which consists of ten nations.

“The government I lead has made it clear. More than any other region, Southeast Asia is where Australia’s future lies,” Albanese told a business forum on the summit’s sidelines.

After a string of painful disagreements, Australia has been looking more and more to forge commercial connections outside of China, its main trading partner.

Driven by years of rapid and consistent population expansion, the ASEAN region is commonly seen as a rising economic giant.

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Southeast Asia is likewise well-positioned to be a significant player in the global quest for renewable energy, thanks to its abundant supplies of vital minerals and growing need for power.

The majority of the loans and export finance included in Australia’s new investment package will go towards renewable energy and infrastructure projects.

Albanese said it was “the most significant upgrade of Australia’s economic engagement with ASEAN for a generation”.

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While leaders were eager to focus on trade and business, more sensitive questions about China’s growing sway in Southeast Asia were never far from mind.

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Singapore Prime Minister Lee Hsien Loong said the city-state would gladly host Australia’s fleet of nuclear-powered submarines once they were up and running – an offer likely to raise Beijing’s hackles.

The United States and the United Kingdom have pledged to help Australia acquire a fleet of nuclear-powered subs as part of joint plans to counter China’s influence in the region.

While some ASEAN members have expressed reluctance to back the so-called AUKUS defence pact, former British colony Singapore has been full throated in its support.

“I’ve said before, and I repeated to the prime minister on this visit, that when the new Australian submarines are ready, we welcome them to visit Changi naval base,” Lee told reporters on Tuesday.

Climate change also looms large on the summit’s agenda.

Southeast Asia’s hunger for energy is largely fed by fossil fuels, while Australia remains one of the world’s biggest exporters of gas and polluting thermal coal.

Both are increasingly eager to pivot toward renewable energy.